The First Step in Creating a Great Employee Experience - The E-Factor Plan
Est. Read Time: 3 min.
This post is the third in our E-Factor series, where we explore hot topics in Employee Experience. To read more about the E-Factor, click here.
At this point, we all know that having a great Employee Experience (EX) is non-negotiable to attracting and keeping our best talent. The single biggest problem I hear from HR leaders in creating a memorable employee experience is they simply don't have the resources.
Here's the money quote from me to share with your C-suite leaders:
"Great EX takes resources, bad EX takes resources. It's your choice on how you want me to spend the resources."
This is 100% true! If your employee experience is average to bad, your organization is bleeding talent. You're hiring B and C level talent on a regular basis, you're having to spend money training and developing, you're probably bringing in hired guns to do the real heavy lifting within your organization, etc.
The first step to creating a market leading employee experience is figuring out how you're currently spending the resources you need to actually drive an employee experience your employees will respond positively to. You need to know this because this is the money you should be using on employee experience, not on replacing talent, augmenting your talent, or totally shopping out work that could be done cheaper and better in-house.
I start with resources because we live in the real world. Sure, you can do some cool stuff with employee experience for little or no resources, but the larger the organization, it is almost impossible to move the employee experience needle without actual resources. You need to create programs, you need people owning and running those programs, you need technology. The last time I checked all of that stuff takes money!
Gone are the days of HR throwing itself on the sword and trying to put together half-baked programs on a shoestring budget and calling it good enough. World Class HR, Best in Class HR, Best Practice HR all have one common theme, they have the resources available to them to do an effective job. Your organization needs to understand the cost of running a great employee experience, and the return on the value it creates.
We know the cost of replacing our talent, by position, is very organization-specific. While SHRM and other organizations want to tell us, broadly, that replacing talent is one or one and a half times the person's salary, we know our C-suites don't buy this concept. But, we definitely can get our execs to agree that the cost of replacing is far more than the cost of keeping and retaining!
This gap between those two numbers, whatever you can gain buy-in to, is your potential resources. If it costs my organization $10,000 to replace per position, but I know I can create great EX for $1,000 per employee, and this great EX reduces turnover by 25%, well I now have a real number that my Chief Financial Officer and I can sit down and have a new budget discussion about!
That's only one area of potential resource! You also have buckets of money being spent in your organization in all kinds of ways around not being staffed properly with consultants, contractors, staffing fees, outsourced projects, etc. Once you get your arms around who and why this money is being spent, you're going to be amazed at how much you can save with a great EX program.
Also, you flat out have great research within the market that demonstrates that organizations with high EX also have a more productive and engaged workforce. There's obvious value to this, but I would recommend, again, you negotiate with your C-suite to determine what they feel this value is. If we raise productivity by 'X', what is that value to the organization?
I fight for resources upfront. I don't need to go down a path of planning and scheming on what our employee experience can be if I don't even know if I can get the resources. I see so many great HR leaders go down the path of showing their organization 'what' they need to do, 'how' we need to it, and then never answer the resource question. Almost always those programs die on the vine!
Answer the resource question for your organization, show them the value of EX and the measures it will impact, and you'll get the resources you need. Once you have those resources, you can then build a plan to fit what you need and what you can afford. That will be a plan and programs you'll actually really be able to bring to life!
In future posts, I'll show you some great examples of programs and things real companies are doing today to drive great employee experience and drive their E-Factor to world class!
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About Tim Sackett
I’m a 20 year HR/Recruiting Talent Pro with a Master’s in HR and SPHR certification, currently residing in Lansing, MI. Currently the President at HRU Technical Resources – a $40M IT and Engineering contract staffing firm and RPO. Prior to joining HRU, I was the Director of Employment at Sparrow Health System, Regional HR and Staffing Director with Applebee’s Intl., Retail Health Recruiting Manager and Regional HR Mgr. with ShopKo Stores and Pamida respectively. I’ve split my career half between recruiting and half between HR generalist roles – also split half between the HR vendor community and Corporate America – So, I think I get it from both sides of the desk.